Stop using family belongings as collateral secretly - Tamwa

By The guardian reporter

17th May 2012

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TAMWA, Executive Director, Ananilea Nkya

Married couples have been urged to avoid acquiring loans by using family properties secretly as collateral because the move has far reaching consequences to children in case loans are not paid accordingly.

The Tanzania Media Women Association (Tamwa) said in a statement yesterday that couples need to inform each other and their respective family members, including children, in case they decide to take loans which involve presenting houses and other properties as collateral for taking loans so that when the borrower dies or fails to pay, families could follow up effectively to save loosing family assets.

“The current trend in the country shows that some married people, women or men, take loans secretly from banks and other financial facilities without informing their husbands, wives and children even if their children are grown up,” the statement read in part.

As a result, it said, family properties presented as collateral get sold through court processes after the borrower fail to repay the loans accordingly.

“This leads to family problems, including subjecting children to homeless and denying them other basic needs,” it added.

“Tamwa is concerned with this matter because over the last six months, it has attended 12 cases of women complaining of their families suffering as a result of loosing properties after their husbands engaged in mortgaging family properties secretary to acquire loans,” it said.